Sydney: North Korea has issued a warning of an `all-out war` with the United States, urging it to stop military drills.

In a thinly veiled threat to strike the US, the North`s National Defence Commission, chaired by leader Kim Jong-Un, said that the US government must withdraw its policy of hostility against the North.

The statement said that if the United States wants peace on both the Korean peninsula and the US mainland it must stop its policy of hostility towards them.

According to news.com.au, the comments come after a two-day joint naval drill between Japan, South Korea and the US, which included an American nuclear aircraft carrier, sparked a series of angry responses and threats from Pyongyang.

North Korea slammed the naval drill as a serious military provocation and vowed to `bury in the sea` the American carrier taking part in the exercise, the report said.

The US and South Korea have long demanded that Pyongyang show tangible commitment to ending its nuclear weapons programme.